European equities ended fairly flat, while Wall Street equities continue their strong rally

Thursday, November 21, 2013

European equity markets ended fairly flat on Thursday, despite fairly robust US economic data from the US and UK. CAC ended slightly lower by 0.23% at 4258.35 points, while DAX remained fairly unchanged at 9202.47 points. London finished the day flat, just above 6680 points. On the other side, Wall Street continues its strong rally with Dow Jones surging by another 90 points toward 16,000 points, at the time of writing.

On the macroeconomic front, the UK’s PSBR figures showed increasing tax revenues as the economy is starting to grow. In addition, we received fairly robust US employment data as weekly jobless claims fell to 323,000, more than analysts expected. However, the US Philadelphia Fed business index fell to 6.5 in November, missing estimates of 15.0.

In London, mining stocks slid lower due to weaker base metals prices. Fresnillo, Vedanta, Randgold, Rio Tinto and Anglo American retreated between 1.42% abd 4.5%. Tullow Oil and Petrofac also posted declines of 0.90% and 0.40%, respectively. On the upside, the UK healthcare sector climbed higher with Astrazeneca and Shire gaining 2.78% and 1.58%, respectively. 

The euro continues its upside trend, trading around 1.347 against the US dollar. However, the US dollar index is holding fairly well above 81.0 area, showing signs of correction higher, especially following the recent robust US economic figures.

Tomorrow, investors will be keeping an eye on the US KC Fed manufacturing data, while German IFO business climate data will also provide further momentum to the markets.


Topics: DJI, USD, Base Metals, Macro, EUR
More from: Myrto Sokou